Indiana 2025 2025 Regular Session

Indiana House Bill HB1276 Introduced / Fiscal Note

Filed 04/10/2025

                    LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
FISCAL IMPACT STATEMENT
LS 7030	NOTE PREPARED: Apr 10, 2025
BILL NUMBER: HB 1276	BILL AMENDED: Apr 10, 2025 
SUBJECT: Various Alcoholic Beverage Matters.
FIRST AUTHOR: Rep. Manning	BILL STATUS: CR Adopted - 2
nd
 House
FIRST SPONSOR: Sen. Alting
FUNDS AFFECTED:XGENERAL	IMPACT: State & Local
XDEDICATED
FEDERAL
Summary of Legislation: (Amended) This bill allows a craft manufacturer to participate in a farmers'
market, subject to certain conditions. 
The bill allows a liquor retailer and a liquor dealer to serve samples of mixed beverages. 
The bill increases, from 45 to 75 days, the number of days in a calendar year the Alcohol and Tobacco
Commission (commission) may approve for a craft manufacturer to participate in a trade show or exposition. 
This bill repeals a provision prohibiting a beer dealer from selling and delivering beer for carry-out, or for
delivery to a customer's residence or office, in a quantity that exceeds 864 ounces in a single transaction. 
The bill repeals a limitation on the maximum quantity of liquor that a liquor dealer may deliver to a
customer's residence or office at any one time. 
The bill repeals a provision that allows the holder of a farm winery permit to sell the winery's wine to
consumers by the bottle at a farmers' market that is operated on a nonprofit basis. 
The bill repeals a limitation on the maximum quantity of wine that a wine dealer may sell in a single
transaction. 
The bill provides that the commission may issue a three way permit: (1) to a theater within the historic
district of a city with a certain population; and (2) that is not subject to the quota. 
The bill requires a permittee to obtain written permission from the appropriate local or state agency to locate
a restaurant or hotel patio or terrace in the public right-of-way. 
The bill also allows the commission to issue a food hall master permit to a food hall that meets certain
requirements.
HB 1276	1 Effective Date: (Amended) July 1, 2025.
Explanation of State Expenditures: (Revised) Alcohol and Tobacco Commission (ATC): The ATC would
have an increase in workload to administer and enforce the bill’s provisions and issue permits. The bill’s
requirements are within the ATC’s routine administrative functions and should be able to be implemented
with no additional appropriations, assuming near customary agency staffing and resource levels.
Right-of-way: The bill may increase workload for the Indiana Department of Transportation to provide
written permission for a permittee to locate a patio or terrace within a state controlled right-of-way. The bill’s
requirements are within the agency’s routine administrative functions and should be able to be implemented
with no additional appropriations, assuming near customary agency staffing and resource levels.
Explanation of State Revenues: Food Hall: The bill may increase revenue from food hall permits by
allowing the ATC to issue a master food hall permit in Indianapolis near a certain historic building. The food
hall must contain not less than five distinct nonaffiliated food and beverage vendors. The initial fee for a food
hall master permit is $50,000, and the annual renewal fee is $5,000. The initial fee for a food hall vendor’s
permit is $2,500 if the space is less than 1,000 square feet or $5,000 if the space is less 2,000 square feet.
Annual renewal fees for food hall vendor’s permits are $1,000. Revenue from the food hall permits is
deposited into the Enforcement and Administration Fund.
Permit for Theaters: The bill allows theaters within a historic district in the city of Logansport to apply for
a three-way permit. Permit fee revenue would increase if the ATC issues additional permits. Annual permit
fees are $1,000 if beer, wine, and liquor are served. Revenue is distributed to the General Fund (37%), the
city or town in which the licensed premises are located (33%), and the Enforcement and Administration Fund
(30%).
(Revised) ATC Penalty: The following provisions may affect the civil penalties imposed by the ATC: 
(1) The bill allows craft manufacturers to participate in a farmers' market, subject to certain
conditions, and it allows additional days to participate in a trade show or exposition.  
(2) It removes the limits on quantity for delivery for a beer and liquor dealer and removes the limit
for maximum quantity of wine that a wine dealer permit may sell in a single transaction.
(3) It allows a liquor retailer and a liquor dealer to serve samples of mixed beverages.  
(4) The holder of a farm winery permit may no longer sell the winery’s wine to consumers by the
bottle at a farmers’ market that is operated on a nonprofit basis. 
To the extent that the bill decreases the number of permittees found to be in violation, revenue from penalty
fees could decrease. The ATC can collect a maximum penalty of $4,000, which is deposited in the
Enforcement and Administration Fund. Any decrease in penalties is expected to be small.
(Revised) Penalty Provision: The bill may decrease Class B misdemeanors for violations of the scope of
permit for artisan distillers. (The bill allows artisan distillers to participate in a farmers' market, subject to
certain conditions, and additional days to participate in a trade show or exposition.) Any decrease in criminal
penalties is expected to be small.
If fewer court cases occur and fines are collected, revenue to both the Common School Fund (from fines)
and the state General Fund (from court fees) would decrease. The maximum fine for a Class B misdemeanor
is $1,000. The total fee revenue per case would range between $113 and $138. The amount of court fees
HB 1276	2 deposited will vary depending on whether the case is filed in a court of record or a municipal court. The
following linked document describes the fees and distribution of the revenue: Court fees imposed in criminal,
juvenile, and civil violation cases.
Explanation of Local Expenditures: Right-of-way: The bill may increase workload for a local agency that
manages a right-of-way to provide written permission for a permittee. The bill’s requirements are within the
agency’s routine administrative functions and should be able to be implemented with no additional
appropriations, assuming near customary agency staffing and resource levels.  
(Revised) Penalty Provision: A Class B misdemeanor is punishable by up to 180 days in jail.
Explanation of Local Revenues: (Revised) Penalty Provision: If less court actions occur and a guilty
verdict is entered, less revenue will be collected by certain local units. If the case is filed in a court of record,
the county general fund will receive $47.40 and qualifying municipalities will receive a share of $3.60. If
the case is filed in a municipal court, the county receives $30, and the municipality will receive $46. The
following linked document describes the fees and distribution of the revenue:  Court fees imposed in
criminal, juvenile, and civil violation cases.
State Agencies Affected: Alcohol and Tobacco Commission; Indiana Department of Transportation.  
Local Agencies Affected: Local agencies that manage right-of-ways; Local units; City of Indianapolis; City
of Logansport; Trial courts, local law enforcement agencies.
Information Sources: Legislative Services Agency. Indiana Handbook of Taxes, Revenues, and
Appropriations, FY 2024. Indiana Supreme Court, Indiana Trial Court Fee Manual.
Fiscal Analyst: Nate Bodnar,  317-234-9476.
HB 1276	3